New York Business
Divorce Attorney
New York Business Divorce Attorneys
Unfortunately, business partnerships don’t always work out, and there comes a time when joint owners of a business must part ways. Sometimes it is due to a disagreement over business ideas or opposing opinions on an important business decision. In more severe cases, one partner has committed a crime against the company or the partner. Still, other partnership dissolutions are mutual and amicable decisions. Regardless of the reason, when joint owners of a business decide they do not wish to work together, a business divorce, or dissolution of the partnership, is often the only solution.
Business divorce is a legal term that involves the severance of joint ownership in businesses like privately owned companies, limited liability corporations, partnerships, and other joint ventures. The purpose of this legal action is to allow co-business owners to go in different directions. Many times, a business divorce is time sensitive. It requires a restructuring of a company in terms of ownership and management to keep the business running despite the personal or legal disagreements of the co-owners. If the continuation of business operations is not considered, the business’ livelihood could be in danger, and its value could be significantly diminished.
Consult With a New York Business Divorce Attorney
In some cases, someone is appointed to maintain business operations because it is often difficult for feuding partners to co-manage their company. It is usually necessary to begin court proceedings for a “receiver” to be appointed to operate the business while the owners carry out their business divorce. For this reason, it is imperative for anyone seeking a business divorce to consult with an experienced divorce lawyer about these matters.
The Law Offices of Robert Tsigler, PLLC, consists of an established group of NY business divorce lawyers who offer a substantial amount of experience from past successful cases and an in-depth knowledge of NY business divorce law. Their exceptional reputation for providing quality business litigation precedes them and is evident in their many successful cases and satisfied clientele.
What To Do If You Are Involved in a Business Divorce
You should consider hiring a divorce attorney to protect your interests and your business if your business partner has filed for business divorce and you have been served with papers. An attorney can help you write a strong reply based on your circumstances and, if executed properly, enter a negotiation discussion that can keep the case out of court, which is ideal in most of these types of cases.
Alternatively, if you are seeking to serve your business practice with papers for a business divorce, a strong business lawyer is also beneficial in navigating the intricacies of NY law. If your business is an LLC, it is also to your advantage to have a lawyer review your corporation’s laws with you. They offer more limited possibilities for the commencement of dissolution litigation than regular corporation laws. You can do yourself a big favor by scrutinizing your LLC’s operating agreement to find out if any contractual provisions are included.
Buying Out Your Partner
Under NY corporate law, if you’re considering options such as buying out your partner as an alternative to a business divorce, you may be able to buy them out as a “disgruntled shareholder” once the dissolution proceedings are initiated.
Why Hire a Business Divorce Lawyer?
In addition to the aforementioned reasons, one or both co-owners should seek professional legal representation if they are headed toward a business divorce. A divorce lawyer can also provide the following services and experience to facilitate your case at a much more progressive pace:
- Provide corporate litigation.
- Facilitate resolution of partnership and limited partnership disputes
- Assist in alleging shareholder oppression.
- Assist in determining a breach of fiduciary duty and fraud.
- Assist in the separation of assets.
- Help in dividing business ownership interests.
- Help ensure that the viability of the business is protected and operations continue while legal proceedings are carried out.
An attorney is also useful when the business owners do not wish to go to court. Settling a dispute outside of court is always ideal because it saves time and is much less expensive. An attorney can assist business partners in dissolving their partnership by facilitating an agreeable dissolution that is voluntary for both parties. Voluntary dissolution is perfectly legal as long as there are no disputes between the owners.
Perhaps the most difficult part of the dissolution of a partnership is dividing the business assets, as well as the business, inventory, and debts. Depending on the circumstances of the company and the partners, as well as the intentions for the business’ future, It can be emotionally draining and extremely stressful. The division of a business is likened to the division of marital property in a divorce, hence the name, business divorce. A well-qualified business divorce attorney can help diffuse disputes and provide valuation methodology, all the while providing information to mediate negotiations or take an aggressive approach to litigation if necessary. A good lawyer will have the crucial knowledge and understanding of the legal system to provide Whatever aspect of the law you need to wrap up your case and finalize your business dissolution.
Selling a Jointly Owned Business to a Third Party
Some business owners wish to sell their joint business outright to a third party. This can also be tricky and necessitates legal know-how and experienced advice. There may also be a dissolution of the company and assets, and all of the partners wish to end business operations completely. In any case, determining how to divide company assets and liabilities can get complicated, even if the joint partners agree about ending the partnership.
Criminal Activity of One Partner
In the event of criminal activity or mismanagement of company funds, it is important that you have an experienced attorney to help build a case against your partner. This is the only way to ensure your interests and the interests of the company are protected going forward. Furthermore, you, too, could be implicated in crimes committed, even if you didn’t know about them. It is important to discuss your unique situation with an educated attorney who can help you determine if your partner was involved in any wrongdoing related to your joint business and how to move forward if so. The sooner you investigate your suspicions, the better because your investment and your business could be at stake.
FAQs:
Q: How Much Does the Average Divorce Lawyer Cost in NYC?
A: There is no definitive answer to this because the fee for a business divorce would most likely depend on the size of the business in question and the complexities of the case. The cost could range anywhere from $2,000 to $100,000, but this is an estimate of the average cost, and actual costs could be significantly more.
Q: What Is the Average Retainer Fee for a Divorce Lawyer in New York?
A: A retainer is like a deposit or down payment attorneys receive from their clients at the onset of legal services. It ensures the client that the lawyer will begin working on the case in good faith and that the remainder of the fees will be paid later. It is usually based on the estimated number of hours the attorney expects to spend on the case, times their hourly rate. The amount of the retainer depends on factors like the complexity of the case or the experience of the attorney. It normally averages between $500 and $5,000, but in some cases, it could be more.
Q: Do You Get a Retainer Fee Back When Your Case Is Over?
A: No, you do not get a retainer back. It is like a non-refundable deposit. The number of hours a lawyer works on the case (times their hourly rate) is deducted from the retainer as they go. In fact, the retainer usually is depleted, and the case then requires another payment, so the lawyer can continue working on the case.
Q: Can A Business Name Be Reused After a Dissolution?
A: Yes. A business name can be reused the day after a dissolution is filed. Therefore, if a partner wanted to dissolve a business partnership with a co-owner, the business owners could dissolve the business and then restart a new company under the sole ownership of the same name to maintain brand recognition and customer base.
Q: If I Am in a Business Partnership With My Spouse, Does a Divorce Also Dissolve Our Business Partnership?
A: A divorce of marriage does not dissolve a business partnership between the two parties. The parties must take separate action through the courts to dissolve the business relationship. However, some couples find they can better maintain a business relationship together after divorce.
Contact the Law Offices of Robert Tsigler, PLLC
If you and your business partner are ready to part ways, Call the Law Offices of Robert Tsigler, PLLC, to schedule a legal consultation to discuss your options for a business divorce. We are ready to listen, answer your questions, and offer genuine legal advice. We are prepared to litigate on your behalf if necessary.
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Getting representation as soon as possible following any Divorce-related charge is the best way to promote a positive result from a subsequent trial. Only an experienced New York Business Divorce lawyer can successfully defend your case.
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